The Raymond Company Accounting & Tax Service Inc

04/16/2026

09/30/2022

TAX EXTENSION FILERS DON'T NEED TO WAIT UNTIL OCTOBER 17

Taxpayers who requested an extension to file their 2021 tax return don't have to wait until mid-October to file. If a taxpayer has all the necessary information to file an accurate return, they can file electronically at any time before the October deadline and avoid a last-minute rush to file.

Taxpayers who requested more time to file an accurate return have until October 17, 2022. Those who have what they need to file, however, should file as soon as possible to avoid delays in processing their return.

09/28/2022

FILE 2019 AND 2020 TAX RETURNS BY SEPT. 30 TO RECEIVE COVID PENALTY RELIEF

Individuals and businesses, affected by the COVID-19 pandemic, may qualify for late-filing penalty relief if they file their 2019 and 2020 tax returns by September 30, 2022. This penalty relief is automatic. Eligible taxpayers who already filed their tax return do not need to apply for it, and those filing now do not need to attach any additional statement or document to their tax return. Most taxpayers should receive these refunds by the end of September.

The relief was announced last month. It only applies to the failure-to-file penalty. This penalty is usually assessed at a rate of 5% per month, up to 25% of the unpaid tax, when a federal income tax return is filed late. This relief applies to forms in the Form 1040 and 1120 series, as well as others listed in Notice 2022-36, on IRS.gov.

This is a great opportunity for those who fell behind on their taxes during the pandemic to catch up. Any eligible income tax return must be filed on or before September 30, 2022.

The failure-to-pay penalty and interest will still apply to unpaid tax, based on the return's original due date. The failure-to-pay penalty is normally 0.5% per month. The interest rate is currently 5% per year, compounded daily, but that rate is due to rise to 6% on October 1, 2022.

Taxpayers can limit these charges by paying as soon as possible. For fast and convenient electronic payment options, taxpayers can visit the Payments page of IRS.gov. Penalty and interest charges generally don't apply to refunds.

Certain international tax returns may qualify.
The notice also provides details on relief for filers of certain international information returns when a penalty is assessed at the time of filing. No relief is available for applicable international information returns when the penalty is part of an examination. To qualify for this relief, any eligible tax return must be filed on or before September 30, 2022.

Which tax returns are not eligible?
Penalty relief is not available in all situations, such as where a fraudulent return was filed, where the penalties are part of an accepted offer in compromise or a closing agreement, or where the penalties were finally determined by a court. For complete details, taxpayers should read Notice 2022-36, available on IRS.gov.

Other penalties, such as the failure to pay penalty, are not eligible. However, taxpayers may use existing penalty relief procedures for penalties not eligible under Notice 2022-36. More information about existing procedures is available on the Penalty Relief page of IRS.gov.

This relief doesn't apply to any 2021 tax returns. Everyone who still needs to file a 2021 tax return should do so as soon as possible.

04/11/2022

APRIL 18 DEADLINE FOR INDIVIDUALS

The deadline for filing Form 1040 individual tax returns is April 18, 2022. Form 4868 may be filed to extend the due date until October 17th. However, that does not extend the time to pay any tax due. Extensions and payments must also be filed by the April 18th deadline to be considered timely.

02/09/2022

Due to Hurricane Ida, our office on Airline Drive was severely damaged and the building is not currently open. Our new office address is 909 West Esplanade Ave Suite 106, Kenner, LA 70065.

05/28/2021

THE AMERICAN RESCUE PLAN INCLUDES RETROACTIVE TAX BENEFITS THAT CAN HELP TAXPAYERS

The IRS reminds taxpayers who still haven’t filed, that several provisions of the American Rescue Plan affect their 2020 tax returns.

One provision excludes up to $10,200 in unemployment compensation from income. Another provision benefits many people who purchased subsidized health coverage through either federal or state Health Insurance Marketplaces. The law also includes a third round of Economic Impact Payments, currently going out to eligible Americans, that are generally equal to $1,400 per person for most people. The IRS will automatically provide these benefits to eligible filers.

Most taxpayers who have already filed their 2020 returns should not file amended returns, file refund claims, or contact the IRS about obtaining these newly enacted tax benefits. These actions will not speed up a future refund. In fact, they could even slow down an existing refund claim.

Some unemployment compensation not taxed for many
For tax year 2020 only, the first $10,200 of unemployment compensation is not taxable for most households. This tax benefit is available only to those whose modified adjusted gross income is below $150,000 during 2020. The same income cap applies to all filing statuses.

This means that those eligible who haven't yet filed a 2020 return can exclude the first $10,200 of total unemployment compensation received from their income and pay tax only on the difference. For couples, the $10,200 exclusion applies to each spouse. Taxpayers can visit IRS.gov for details.

For any eligible taxpayer who has already filed a tax return and reported their total unemployment compensation as income, the IRS is automatically adjusting their return and providing them this tax benefit. Refunds, based on this adjustment, are being issued in May and will continue through the summer. Refund amounts will vary and not all adjustments will result in a refund.

Repayment of excess advance premium tax credit suspended
Taxpayers who purchased health insurance through a federal or state Health Insurance Marketplace for insurance in 2020 don’t need to repay their 2020 excess advance payments of the premium tax credit and will need to attach Form 8962, Premium Tax Credit, when they file their 2020 return only to claim an additional credit. They may use Form 8962 to figure the amount of the premium tax credit they qualify for based on their 2020 tax information and reconcile it with any advance premium tax credit that was paid for them through the Marketplace. If the PTC based on their 2020 tax information is more than the APTC, they can claim a net premium tax credit on Form 8962 and must file Form 8962 when they file their 2020 tax return.

However, if the APTC was more than their allowable PTC based on their 2020 tax information, known as the excess APTC, the new law suspends the requirement to repay excess APTC for 2020. This means that taxpayers with excess APTC for 2020 do not need to report the excess APTC or file Form 8962.

Taxpayers who have already filed should not file an amended tax return. The IRS will automatically reduce the repayment amount to zero for anyone who already reported excess APTC for 2020. In addition, the agency will automatically reimburse anyone who has already repaid their 2020 excess APTC when they filed.

05/26/2021

FILE ON TIME EVEN IF YOU CAN'T PAY

The tax deadline has been extended until June 15, 2021 to file the 2020 federal income tax return for Texas, Oklahoma and Louisiana.

Do you owe more tax than you can afford to pay when you file? If so, don’t fail to take action. Make sure to file on time. That way you won’t have a penalty for filing late. Here is what to do if you can’t pay all your taxes by the due date.
•File on time and pay as much as you can. You should file on time to avoid a late filing penalty. Pay as much as you can with your tax return. The more you can pay on time, the less interest and late payment penalty charges you will owe.
•Pay online with IRS Direct Pay. IRS Direct Pay is the latest electronic payment option available from the IRS. It allows you to schedule payments online from your checking or savings account with no additional fee and with an immediate payment confirmation. It’s, secure, easy, and much quicker than mailing in a check or money order. To make a payment or to find out about your other options to pay, visit IRS.gov/payments.
•Pay the rest of your tax as soon as you can. If it is possible, get a loan or use a credit card to pay the balance. The interest and fees charged by a bank or credit card company may be less than the interest and penalties charged for late payment of tax. For debit or credit card options, visit IRS.gov.
•Use the Online Payment Agreement tool. You don’t need to wait for IRS to send you a bill to ask for an installment agreement. The best way is to use the Online Payment Agreement tool on IRS.gov. You can even set up a direct debit installment agreement. When you pay with a direct debit plan, you won’t have to write a check and mail it on time each month. And you won’t miss any payments that could mean more penalties. If you can’t use the IRS.gov tool, you can file Form 9465, Installment Agreement Request instead. You can view, download and print the form on IRS.gov/forms anytime.
•Don’t ignore a tax bill. If you get a bill, don’t ignore it. The IRS may take collection action if you ignore the bill. Contact the IRS right away to talk about your options. If you face a financial hardship, the IRS will work with you.
In short, remember to file on time. Pay as much as you can by the tax deadline. Pay the rest as soon as you can. Find out more about the IRS collection process on IRS.gov. Also check out IRSVideos.gov/OweTaxes.

05/26/2021

CHECKING WITHHOLDING CAN HELP TAXPAYERS DECIDE IF THEY NEED TO GIVE THEIR EMPLOYER A NEW W-4

All taxpayers should review their federal withholding each year to make sure they're not having too little or too much tax withheld.

Employees, retirees and self-employed individuals can use the IRS Tax Withholding Estimator to help decide if they should make a change to their withholding. This online tool guides users, step-by-step through the process of checking their withholding, and provides withholding recommendations to help aim for their desired refund amount when they file next year. Taxpayers can check with their employer to update their withholding or submit a new Form W-4, Employee's Withholding Certificate.

Adjustments to withholding
Individuals should generally increase withholding if they hold more than one job at a time or have income from sources not subject to withholding. If they don’t make any changes, they will likely owe additional tax and possibly penalties when filing their tax return.

Individuals should generally decrease their withholding if they qualify for income tax credits or deductions other than the basic standard deduction.

Either way, those who need to adjust their withholding must prepare a new Form W-4, Employee's Withholding Certificate. They need to submit the new Form W-4 to their employer as soon as possible since withholding occurs throughout the year.

Individuals who should check their withholding include those:
-whose spouse is an employee
-who are working two or more jobs at the same time or who only work for part of the year
-who claim credits such as the child tax credit
-with dependents age 17 or older
-who itemized deductions on prior year returns
-with high incomes and more complex tax returns
-with large tax refunds or large tax bills for last year

Tax Withholding Estimator benefits
The IRS Tax Withholding Estimator can help taxpayers:
-determine if they should complete a new Form W-4.
-know what information to put on a new Form W-4.
-save time because the tool completes the form worksheets.

Taxpayers should prepare before using the Tax Withholding Estimator by having their most recent pay statements, information for other income sources and their most recent income tax return. The tool does not ask for sensitive information such as name, Social Security number, address, or bank account numbers.

State or local withholding
Some individuals might also need to adjust their state or local withholding. They can contact their state's department of revenue to learn more.

01/15/2021

IRS REMINDS TAXPAYERS TO MAKE FINAL ESTIMATED TAX PAYMENT FOR 2020

Taxpayers who paid too little tax during 2020 can still avoid a tax-time bill and possible penalties by making a quarterly estimated tax payment now, directly to the Internal Revenue Service. The deadline for making a payment for the fourth quarter of 2020 is Friday, Jan. 15, 2021.

Income taxes are pay-as-you-go. This means that by law, taxpayers are required to pay most of their taxes during the year as income is received. There are two ways to do this:

-Withholding from paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation in some cases. This is how most people pay most of their tax.
-Making quarterly estimated tax payments throughout the year to the IRS. Self-employed people and investors, among others, often pay tax this way.
Either method can help avoid a surprise tax bill at tax time and the accompanying penalties that often apply. If a taxpayer failed to make required quarterly estimated tax payments earlier in the year, making a payment to cover these missed payments, as soon as possible, will usually lessen and may even eliminate any possible penalty.

The IRS recommends that everyone check their possible tax liability by using the IRS Tax Withholding Estimator. This online tool allows taxpayers to see if they are withholding the right amount and find out if they need to make an estimated tax payment. Form 1040-ES, available on IRS.gov, includes a worksheet for figuring the right amount to pay as well.

This is especially important for anyone who owed taxes when they filed their 2019 return. Taxpayers in this situation may include those who itemized in the past, two wage-earner households, employees with non-wage sources of income and those with complex tax situations.

Taxpayers who owed taxes when they last filed and who did not adjust their 2020 withholding may find that they owe taxes again, and even a penalty, when they file their 2020 return next year. Making a quarterly estimated tax payment now can help.

Taxpayers should know:

-Most income is taxable, so taxpayers should gather income documents such as Forms W-2 from employers, Forms 1099 from banks and other payers, and records of virtual currencies or other income. This also includes unemployment income, refund interest and income from the gig economy.
-Unemployment compensation is taxable income. If you received unemployment compensation and the state did not withhold federal income taxes, an estimated tax payment should be made.
In addition, various financial transactions, especially late in the year, can often have an unexpected tax impact. Examples include year-end and holiday bonuses, stock dividends, capital gain distributions from mutual funds and stocks, bonds, virtual currency, real estate or other property sold at a profit.

Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, that can be especially helpful to those who have dividend or capital gain income, owe alternative minimum tax or self-employment tax, or have other special situations.

The fastest and easiest ways to make an estimated tax payment is to do so electronically using IRS Direct Pay, the IRS2Go app or the Treasury Department’s Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments. If paying by check, be sure to make the check payable to the “United States Treasury.”

It’s never too early to get ready for the tax-filing season ahead. For more tips and resources, check out the Get Ready page on IRS.gov.

10/26/2020

TIPS TO HELP TAXPAYERS AVOID POST-DISASTER SCAMS

The IRS reminds taxpayers that criminals and scammers often try to take advantage of generous taxpayers who want to help disaster victims. Everyone should be vigilant. These scams often pop up after a hurricane, wildfire or other disaster.

How the scams start?
These disaster scams normally start with unsolicited contact. The scammer contacts their possible victim by telephone, social media, email or in-person. Scammers also use a variety of tactics to lure information out of people.

Here are some tips to help people recognize a scam and avoid becoming a victim:

• Some thieves pretend they are from a charity. They do this to get money or private information from well-intentioned taxpayers.

• Bogus websites use names that are similar to legitimate charities. They do this scam to trick people to send money or provide personal financial information.

• Scammers even claim to be working for ― or on behalf of ― the IRS. The thieves say they can help victims file casualty loss claims and get tax refunds.

• Disaster victims can call the IRS toll-free disaster assistance line at 866-562-5227. Phone assistors will answer questions about tax relief or disaster-related tax issues.

• Taxpayers who want to make donations can get information to help them on IRS.gov. The Tax Exempt Organization Search helps users find or verify qualified charities. Donations to these charities may be tax-deductible.

• Taxpayers should always contribute by check or credit card to have a record of the tax-deductible donation.

• Donors should not give out personal financial information to anyone who solicits a contribution. This includes things like Social Security numbers or credit card and bank account numbers and passwords.